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> Sub Sale for Under Construction Property, Property

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michaellee
post Mar 21 2011, 09:57 AM

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QUOTE(evie_c @ Mar 21 2011, 12:48 AM)
Hi, I would like to check whether is it possible to sell a property under construction?

Can any one advise me on this?
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This is an interesting scenario especially if your buyer is taking a bank loan. How would the bank treat this transaction especially since it is partial drawdown and you cannot assign your rights since the property is yet to be completed.

In my limited legal knowledge, I think the best way would be for a conditional SPA where the buyer will pay the vendor an agreed deposit and to draw down only after the assignment can be done.
michaellee
post Mar 25 2011, 11:12 AM

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QUOTE(evie_c @ Mar 24 2011, 10:03 PM)
Thanks everyone.. have check with the Developer and they do not allow any transfer of ownership during construction but we still can have sub-sale on the side and the new owner will only pay us 10% and the balance upon completion and hand-over of the key... so I guess not much difference if I sell it after completion of the property..

Thanks again...
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As what I have said above, you can go into a conditional SPA like what the developer has told you. There is actually a difference whether you sell it now or later. Prices might go up and prices might go down. If prices go up or if you forecast prices to go up, then better wait. But if you think prices might drop, then you can get the person to sign now and if they refuse to buy after the prices go down, then at least you earn yourself a neat 10%.

 

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